Comment on Ask HN: Payroll Tax HacksparentComments−triviatise15yyou dont pay SS tax but you pay two income taxes. Regular corporate income tax then personal income tax on any distributions.−veyron15yfor a C corp the income taxes are deductible up to a reasonable amount (so its not quite two full income taxes). At a small level, it may more sense to make salary payments rather than dividends (depends on the scale)last i recall, pub 535 discussed this
Comments
you dont pay SS tax but you pay two income taxes. Regular corporate income tax then personal income tax on any distributions.
for a C corp the income taxes are deductible up to a reasonable amount (so its not quite two full income taxes). At a small level, it may more sense to make salary payments rather than dividends (depends on the scale)
last i recall, pub 535 discussed this